Magna vote on Stronach deal to go ahead on July 23

(In U.S. dollars)

TORONTO, July 9 (BestGrowthStock) – Magna International (MGa.TO: )
said on Friday that it had made available additional
information demanded by regulators in order for it to go ahead
with a stockholder vote to end its dual-class share structure
and pay its founder nearly $900 million.

The world’s No. 3 auto parts maker said the vote, which was
originally scheduled for late June, will take place on July
23.

Shareholders will decide if the company can pay Chairman
Frank Stronach $300 million in cash and 9 million class A
shares to give up his class B shares, through which he controls
Magna. That would be an $864 million payday for 77-year-old
Stronach, based on Magna’s closing share price the day before
the proposal was announced in May.

Just days before Magna had scheduled its original vote on
the matter, the Ontario Securities Commission ruled that the
company must provide shareholders with more disclosure on the
deal.

Under the agreement, Magna and Stronach would also form a
new parts company for electric and hybrid vehicles.

Several prominent Canadian pension plans and investors had
said the deal was abusive to shareholders, calling the payoff
to Stronach “unreasonable” and “fundamentally unfair.” The OSC
ruled that shareholders should have the final say.

In pre-voting ahead of the originally scheduled meeting, a
majority of Magna’s shareholders had indicated support for the
plan.

($1=$1.03 Canadian)
(Reporting by John McCrank; Editing by Lisa Von Ahn)

Magna vote on Stronach deal to go ahead on July 23